Computing child tax credit

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note looks at the various components of child tax credit and how an award is calculated. Note that tax credits cease on 5 April 2025. New claims for tax credits are no longer possible and no more payments will be made after 5 April 2025. Any existing claimants will be migrated to the universal credit system. See the Universal credit guidance note. There is information about migration notice letters on GOV.UK.

Entitlement to the child tax credit

A claimant(s) is entitled to make a claim for child tax credits (CTC) provided the child or qualifying young person ‘normally lives’ with them.

There is no statutory definition of the phrase ‘normally lives’ so it should be given its ordinary meaning. Essentially, for the child to ‘normally live’ with the claimant, the child has to live there for the majority of the time, allowing for temporary and occasional absences.

Where there is shared responsibility for the child or a qualifying young person and it is not clear or cannot be agreed who has the main responsibility

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